Tian Tang Group, the operator of the Sino-Mbale Industrial Park, has officially addressed a partnership dispute involving Automobile Group (U) Limited, another Chinese-owned company in Uganda.
The disagreement has drawn attention due to its impact on the business landscape in the Sino-Uganda industrial zone.
According to Tian Tang Group’s official statement, the conflict traces back to an agreement made in December 2019 between Mr. Liu Qingshan, Mr. Yan Sheng, and Mr. Zhang Zhigang. Under this cooperation, Automobile Group (U) Limited was formed, primarily to assemble automobiles in Uganda. Tian Tang Group played a significant role in supporting the venture by authorizing investment and allocating 10 acres of land within the Sino-Uganda Mbale Industrial Park. In addition, the group provided a rent-free exhibition hall, workshop, and apartment space for three years to facilitate the company’s growth.
Allegations of Conflict of Interest
A key point of contention emerged when Mr. Liu Qingshan allegedly breached the partnership agreement by registering two additional companies—Watu Auto Works (U) Ltd in April 2023 and NEC-WATU Automobile (U) Ltd in October 2023—both without the consent of his partners. These companies reportedly engaged in the same line of business as Automobile Group (U) Limited.
Tian Tang Group claims that Liu misused the premises allocated for Automobile Group’s operations to benefit his new companies. Furthermore, it was alleged that Liu excluded his partners from decision-making and failed to provide financial accountability for the investments made into the business.
Mediation Attempts
Efforts to resolve the matter through mediation, spearheaded by Col. Edith Nakalema of the State House Investors Protection Unit, did not yield results. Tian Tang Group states that Mr. Liu refused to cooperate or submit necessary information, hindering the completion of a comprehensive audit of Automobile Group (U) Limited.
More than a year after the mediation agreement was signed, the audit remained incomplete due to Mr. Liu’s lack of compliance. Tian Tang Group further claims that Mr. Liu forged the signature of their chairman to alter company documents for his personal gain.
Legal Action and Eviction
After unsuccessful mediation attempts, Tian Tang Group pursued legal eviction proceedings against Mr. Liu, with their legal team, K&K Advocates, filing the case in court. The matter is currently pending legal resolution.
Additionally, Tian Tang Group enlisted the assistance of General James Mugira to mediate the dispute. While this process is ongoing, the company expressed surprise at recent claims suggesting they charged investors fees to meet President Yoweri Museveni or other government officials. Tian Tang Group suspects that these allegations were propagated by Mr. Liu’s associates.
